Successfully managing expectations, delivering returns and completely satisfying customers is the nirvana of any business manager but is maximising shareholder value a moot point?

In a recent Forbes article, Steve Denning explores the concept of setting the correct goals of businesses. The concept of maximising shareholder value is challenged and the theory that the centre of all company goals should be to place customers at the centre of the company’s focus, satisfying them completely while earning an acceptable return for stakeholders.

Theoretically, if you take care of customers, shareholders will be taken care of, whereas; if you take care of shareholders, customers do not necessarily benefit, in fact, neither do shareholders.

There is a real opportunity in agriculture to build for the long-term rather than exploiting short-term opportunities and in turn, increasing sustainability. Long-term development provides meaning and motivation for organisations. Long-term client relationships also create bonds that develop great plans, allowing you to bring them to fruition.

The idea of customers coming first and getting things right for consumers, means shareholders will be rewarded as a result. This is applicable to any business and more than achievable with the correct company values and KPI’s.

At Apple, Steve Jobs took delight in signalling to shareholders they didn’t matter much if Apple maintained a customer-focused approach and provided contributions to the world by making tools that we didn’t even know we needed! The Apple story speaks for itself.

According to Denning, the Aspen Institute of Corporate Values Strategy Group recently championed the promotion of long-term orientation of business decision making and investing. Warren Buffet, CEO of Berkshire Hathaway joined the Institute to call an end to short-termism in financial markets that has led to many of the recent market troubles, and ironically, provided Berkshire Hathaway with many of their recent investment opportunities.

In the current market, there are many examples of the apparent disparity between investment horizons, payback periods and finance tenure. Mismatching the outcomes of these often leads to trouble and agribusiness is a prime example. Appropriately and responsibly financing agribusiness ventures in line with underlying business drivers is one of the most important factors of a successful agricultural investment. This will allow your business to focus on the primary driver, satisfying the customer.